Final 12 months? Don’t ask. It was the worst of the 16 years, by far.
All 5 of my alternatives flopped, “led” by a 41% loss in Holly Frontier Corp. (HFC). My different alternatives, all down, had been Charles Schwab Corp. (SCHW), RMR Group Inc. (RMR), Warrior Met Coal Inc. (HCC) and Xerox Corp. (XRX). Collectively, they misplaced 27.2%, whereas the S&P 500 returned 15.4%.
Who would purchase the inventory of a ship retailer throughout a recession? I’d, if the inventory had been promoting for lower than 4 occasions money stream, as is MarineMax Inc. (HZO), primarily based in Clearwater, Florida.
Within the recession of 2007-2009, Marine Max had big-time losses. Nonetheless, I’m uncertain that the present recession will seem like previous ones. The rising hole between wealthy and poor within the U.S. is unhealthy for the nation, I consider, however not unhealthy for Marine Max.
Eleven Wall Avenue analysts comply with MarineMax. 9 presently price it a “purchase,” and solely two a “maintain.” I don’t often like siding with the bulk, however on this case I do.
MarineMax has been worthwhile eight years in a row, and — opposite to what you would possibly count on — had an excellent June quarter.
Making gas from plant matter as a substitute of petroleum struck some individuals because the wave of the long run, therefore the title of FutureFuel Corp. (FF), primarily based in Clayton, Missouri. Biodiesel is its primary product, but it surely additionally produces different chemical compounds, particularly ones utilized in agriculture.
The inventory sells for about six occasions money stream. The corporate has a 15-year revenue streak going. It has barely a speck of debt, and has sufficient money to cowl the debt many occasions over.